Revenue of $304.7 million, up 4.4 percent from the first quarter of
2013

Provision for credit losses of $14.5 million, down 62.2 percent
from the first quarter of 2013

Non-accrual loans and leases of $266.7 million, down 22.3 percent
from the first quarter of 2013

Loan and lease originations increased $422.2 million, or 15.5
percent, from the first quarter of 2013

Average deposits increased $483.9 million, or 3.4 percent, from the
first quarter of 2013

Summary of Financial Results

Table 1

(Dollars in thousands, except per-share data)

Percent Change

1Q

4Q

1Q

1Q14 vs

1Q14 vs

2014

2013

2013

4Q13

1Q13

Net income

$

39,910

$

35,148

$

25,450

13.5

%

56.8

%

Net interest income

201,274

201,862

199,091

(.3

)

1.1

Diluted earnings per common share

.24

.22

.16

9.1

50.0

Financial Ratios (1)

Pre-tax pre-provision return on average assets (2)

1.88

%

1.90

%

1.92

%

Return on average assets

1.00

.90

.70

Return on average common equity

9.35

8.39

6.36

Return on average tangible common equity (3)

10.89

9.83

7.60

Net interest margin

4.66

4.67

4.72

Net charge-offs as a percentage of average loans and leases

.43

.76

1.06

(1) Annualized.

(2) Pre-tax pre-provision profit is calculated as total revenues
less non-interest expense.

(3) See "Reconciliation of GAAP to Non-GAAP Financial Measures"
table.

TCF Financial Corporation (“TCF” or the “Company”) (NYSE:TCB) today
reported net income of $39.9 million for the first quarter of 2014,
compared with net income of $25.5 million for the first quarter of 2013,
and net income of $35.1 million for the fourth quarter of 2013. Diluted
earnings per common share was 24 cents for the first quarter of 2014,
compared with 16 cents for the first quarter of 2013, and 22 cents for
the fourth quarter of 2013.

Chairman’s Statement

“TCF continued its momentum into the first quarter with return on
average assets returning to 1.00 percent for the first time since the
second quarter of 2010,” said William A. Cooper, Chairman and Chief
Executive Officer.

“TCF’s first quarter results were positively impacted by the
continuation of several key trends. Strong loan and lease originations
and core deposit growth, decreased provision through continued credit
quality improvement, and an industry-leading net interest margin more
than offset the seasonal decline in banking fee revenue. In addition,
TCF executed a significant expense reduction and efficiency initiative
by completing the consolidation of 46 branches across our footprint late
in the first quarter. As we continue to execute on our strategies and
take advantage of opportunities, I believe we are well positioned to
achieve strong returns for our stockholders.”

Revenue

Total Revenue

Table 2

Percent Change

1Q

4Q

1Q

1Q14 vs

1Q14 vs

(Dollars in thousands)

2014

2013

2013

4Q13

1Q13

Net interest income

$

201,274

$

201,862

$

199,091

(.3

)

%

1.1

%

Fees and other revenue:

Fees and service charges

36,619

43,254

39,323

(15.3

)

(6.9

)

Card revenue

12,250

13,066

12,417

(6.2

)

(1.3

)

ATM revenue

5,319

5,382

5,505

(1.2

)

(3.4

)

Total banking fees

54,188

61,702

57,245

(12.2

)

(5.3

)

Leasing and equipment finance

22,288

23,624

16,460

(5.7

)

35.4

Gains on sales of auto loans, net

8,470

7,278

7,146

16.4

18.5

Gains on sales of consumer real estate loans, net

11,706

5,345

8,126

119.0

44.1

Other

6,381

6,419

3,726

(0.6

)

71.3

Total fees and other revenue

103,033

104,368

92,703

(1.3

)

11.1

Subtotal

304,307

306,230

291,794

(.6

)

4.3

Gains on securities, net

374

1,044

-

(64.2

)

N.M.

Total revenue

$

304,681

$

307,274

$

291,794

(.8

)

4.4

Net interest margin (1)

4.66

%

4.67

%

4.72

%

Fees and other revenue as a % of total revenue

33.82

33.97

31.77

N.M. Not meaningful.

(1) Annualized.

Net Interest Income

Net interest income for the first quarter of 2014 increased $2.2
million, or 1.1 percent, compared with the first quarter of 2013 and
remained relatively flat compared to the fourth quarter of 2013. The
increase from the first quarter of 2013 was driven by higher average
loan balances in the auto finance and inventory finance businesses as
well as decreased rates on various deposit products. This increase was
partially offset by downward pressure on yields across the lending
businesses in this increasingly competitive low interest rate
environment as well as lower average balances of consumer real estate
and higher yielding commercial fixed-rate loans due to run-off
exceeding originations.

Net interest margin in the first quarter of 2014 was 4.66 percent,
compared with 4.72 percent in the first quarter of 2013 and remained
relatively flat compared to the fourth quarter of 2013. The decrease
from the first quarter of 2013 was primarily due to downward pressure
on origination yields in the leasing and equipment finance and
consumer businesses due to the increasingly competitive low interest
rate environment as well as a shift in commercial real estate from
higher yielding fixed-rate loans to lower yielding variable-rate loans
due to marketplace demand.

Non-interest Income

Fees and service charges in the first quarter of 2014 were $36.6
million, down $2.7 million, or 6.9 percent, from the first quarter of
2013 and down $6.6 million or 15.3 percent, from the fourth quarter of
2013. The decrease from the first quarter of 2013 was primarily due to
lower transaction activity, which was negatively impacted by the harsh
winter weather experienced across the bank’s footprint, and by higher
average checking account balances per customer, partially offset by a
larger account base. The decrease from the fourth quarter of 2013 was
primarily due to seasonality resulting in a decline in transaction
activity, which was negatively impacted by the adverse weather as
mentioned above, and by an increase in average checking account
balances per customer.

Leasing and equipment finance revenue was $22.3 million during the
first quarter of 2014, up $5.8 million, or 35.4 percent, from the
first quarter of 2013 and down$1.3 million, or 5.7 percent,
from the fourth quarter of 2013. The increase from the first quarter
of 2013 and the decrease from the fourth quarter of 2013 were
primarily due to customer-driven events impacting sales-type lease
revenue.

TCF sold $347.4 million, $279.2 million and $202.3 million of consumer
real estate loans during the first quarters of 2014 and 2013, and the
fourth quarter of 2013, respectively, resulting in net gains in the
same respective periods.

TCF sold $261.7 million, $179.8 million and $236 million of auto loans
during the first quarters of 2014 and 2013, and the fourth quarter of
2013, respectively, resulting in net gains in the same respective
periods.

Loans and Leases

Period-End and Average Loans and Leases

Table 3

Percent Change

(Dollars in thousands)

1Q

4Q

1Q

1Q14 vs

1Q14 vs

2014

2013

2013

4Q13

1Q13

Period-End:

Consumer real estate:

First mortgage lien

$

3,668,245

$

3,766,421

$

4,136,823

(2.6

)

%

(11.3

)

%

Junior lien

2,407,286

2,572,905

2,281,843

(6.4

)

5.5

Total consumer real estate

6,075,531

6,339,326

6,418,666

(4.2

)

(5.3

)

Commercial

3,136,421

3,148,352

3,334,716

(.4

)

(5.9

)

Leasing and equipment finance

3,456,759

3,428,755

3,185,234

.8

8.5

Inventory finance

2,123,808

1,664,377

1,931,363

27.6

10.0

Auto finance

1,400,527

1,239,386

719,666

13.0

94.6

Other

22,550

26,743

23,701

(15.7

)

(4.9

)

Total

$

16,215,596

$

15,846,939

$

15,613,346

2.3

3.9

Average:

Consumer real estate:

First mortgage lien

$

3,719,961

$

3,814,365

$

4,187,057

(2.5

)

%

(11.2

)

%

Junior lien

2,607,851

2,597,817

2,369,369

.4

10.1

Total consumer real estate

6,327,812

6,412,182

6,556,426

(1.3

)

(3.5

)

Commercial

3,122,066

3,088,524

3,345,780

1.1

(6.7

)

Leasing and equipment finance

3,434,691

3,342,182

3,199,499

2.8

7.4

Inventory finance

1,862,745

1,734,286

1,686,364

7.4

10.5

Auto finance

1,327,232

1,157,586

670,096

14.7

98.1

Other

13,273

13,369

13,641

(.7

)

(2.7

)

Total

$

16,087,819

$

15,748,129

$

15,471,806

2.2

4.0

Loans and leases were $16.2 billion at March 31, 2014, an increase of
$602.3 million, or 3.9 percent, compared with March 31, 2013 and an
increase of $368.7 million, or 2.3 percent, compared with December 31,
2013. Average loans and leases were $16.1 billion for the first
quarter of 2014, an increase of $616 million, or 4 percent, compared
with the first quarter of 2013 and an increase of $339.7 million, or
2.2 percent, compared with the fourth quarter of 2013. The increases
in both periods for the period-end and average loans and leases were
primarily due to the continued growth of the auto finance portfolio as
TCF expands the number of active dealers and sales force in its
network and further penetrates existing territories, as well as an
increase in the inventory finance portfolio. The increases from the
first quarter of 2013 were also driven by an increase in leasing and
equipment finance. These increases were partially offset by a decrease
in total consumer real estate loans driven by run-off in the first
mortgage real estate business and ongoing loan sales. The increases
from the first quarter of 2013 were also partially offset by a
decrease in commercial loans, primarily due to run-off exceeding new
originations.

Loan and lease originations were $3.1 billion for the first quarter of
2014, an increase of $422.2 million, or 15.5 percent, compared with
the first quarter of 2013 and an increase of $59.7 million, or 1.9
percent, compared with the fourth quarter of 2013. The increase from
the first quarter of 2013 was due to the continued growth in auto
finance and an increase in commercial and inventory finance
originations as a result of an improving economic environment. The
increase from the fourth quarter of 2013 was due to seasonality of
inventory finance originations and the continued growth in auto
finance.

Non-accrual loans and leases were $266.7 million at March 31, 2014, a
decrease of $76.7 million, or 22.3 percent, from March 31, 2013, and a
decrease of $10.3 million, or 3.7 percent, from December 31, 2013. The
decrease from both periods was primarily due to improving credit
quality trends and continued efforts to actively work out problem
loans in the commercial portfolio. The decrease from March 31, 2013
was further driven by fewer non-accrual consumer real estate loans as
a result of improved credit quality, and the sale of $40.5 million of
non-accrual loans during the second quarter of 2013. The reduction was
partially offset by $48.6 million of delinquent loans being
transferred to non-accrual status due to a change in the non-accrual
policy for consumer real estate loans during the third quarter of 2013.

Other real estate owned was $63.4 million at March 31, 2014, a
decrease of $8.3 million from March 31, 2013 and a decrease of $5.4
million from December 31, 2013. The decrease from March 31, 2013 was
primarily due to continued efforts to actively work out problem loans
and fewer transfers from consumer real estate non-accrual loans and
leases. The decrease from December 31, 2013 was primarily due to
increased property sales from the consumer real estate portfolio.

The over 60-day delinquency rate, excluding acquired portfolios and
non-accrual loans and leases, was .19 percent at March 31, 2014, down
from .53 percent at March 31, 2013, and flat with December 31, 2013.
The decrease from March 31, 2013 was primarily a result of reduced
over 60-day delinquencies in the consumer real estate portfolio due to
a change in the non-accrual policy for consumer real estate loans
during the third quarter of 2013, which increased non-accrual loans
and leases.

Net charge-offs were $17.4 million for the first quarter of 2014, a
decrease of $23.6 million from the first quarter of 2013 and a
decrease of $12.7 million from the fourth quarter of 2013. The
decrease from the first quarter of 2013 was primarily due to improved
credit quality in the consumer real estate portfolio as home values
improved and incident rates of default declined. The decrease from the
fourth quarter of 2013 was driven by one previously reserved large
commercial loan which was charged off during the fourth quarter of
2013 and continued improvement in consumer real estate credit quality.
Consumer real estate net charge-offs decreased for the sixth
consecutive quarter.

Provision for credit losses was $14.5 million for the first quarter of
2014, a decrease of $23.9 million from the first quarter of 2013 and a
decrease of $8.3 million from the fourth quarter of 2013. The decrease
from the first quarter of 2013 was primarily due to decreased net
charge-offs in the consumer real estate portfolio resulting from
improved home values and a reduction in incidents of default. The
decrease from the fourth quarter of 2013 was due to reduced reserve
requirements in the commercial and consumer real estate portfolios as
credit quality in those portfolios improved, and a reduction in net
charge-offs.

Deposits

Average Deposits

Table 5

Percent Change

(Dollars in thousands)

1Q

4Q

1Q

1Q14 vs

1Q14 vs

2014

2013

2013

4Q13

1Q13

Checking

$

5,016,118

$

4,904,125

$

4,784,945

2.3

%

4.8

%

Savings

6,142,950

6,217,662

6,114,219

(1.2

)

.5

Money market

819,312

845,562

815,374

(3.1

)

.5

Subtotal

11,978,380

11,967,349

11,714,538

.1

2.3

Certificates of deposit

2,543,345

2,392,896

2,323,267

6.3

9.5

Total average deposits

$

14,521,725

$

14,360,245

$

14,037,805

1.1

3.4

Average interest rate on deposits (1)

.22

%

.23

%

.28

%

(1) Annualized.

Total average deposits for the first quarter of 2014 increased $483.9
million, or 3.4 percent, from the first quarter of 2013 and increased
$161.5 million, or 1.1 percent, from the fourth quarter of 2013. The
increase from the first quarter of 2013 was primarily due to growth in
the number of checking accounts, as well as special campaigns for
certificates of deposit. The increase from the fourth quarter of 2013
was primarily due to special campaigns for certificates of deposit, as
well as higher average checking account balances per customer.

The average interest rate on deposits for the first quarter of 2014
was .22 percent, down six basis points from the first quarter of 2013
and down one basis point from the fourth quarter of 2013. The decrease
from the first quarter of 2013 was primarily due to reduced average
interest rates on various savings accounts and certificates of deposit.

Non-interest Expense

Non-interest Expense

Table 6

Percent Change

(Dollars in thousands)

1Q

4Q

1Q

1Q14 vs

1Q14 vs

2014

2013

2013

4Q13

1Q13

Compensation and employee benefits

$

115,089

$

108,589

$

104,229

6.0

%

10.4

%

Occupancy and equipment

34,839

35,504

32,875

(1.9

)

6.0

FDIC insurance

7,563

7,892

7,710

(4.2

)

(1.9

)

Operating lease depreciation

6,227

6,009

5,635

3.6

10.5

Advertising and marketing

5,478

3,275

5,732

67.3

(4.4

)

Deposit account premiums

418

479

602

(12.7

)

(30.6

)

Other

41,335

44,162

37,939

(6.4

)

9.0

Subtotal

210,949

205,910

194,722

2.4

8.3

Branch realignment

-

8,869

-

(100.0

)

-

Foreclosed real estate and repossessed assets, net

6,068

6,066

10,167

-

(40.3

)

Other credit costs, net

119

(376

)

(837

)

N.M.

N.M.

Total non-interest expense

$

217,136

$

220,469

$

204,052

(1.5

)

6.4

N.M. Not meaningful.

Compensation and employee benefits expense increased $10.9 million, or
10.4 percent, from the first quarter of 2013 and increased $6.5
million, or 6 percent, from the fourth quarter of 2013. The increases
from both periods were primarily due to increased staff levels to
support the growth of auto finance and risk management, and expenses
related to higher incentives based on production results. The increase
from the fourth quarter of 2013 was also due to the seasonality of
payroll taxes.

Foreclosed real estate and repossessed assets expense decreased $4.1
million, or 40.3 percent, from the first quarter of 2013 and remained
relatively flat compared to the fourth quarter of 2013. The decrease
from the first quarter of 2013 was driven by accelerated expenses in
the first quarter of 2013 related to a portfolio sale of consumer
properties, a reduction in write-downs in balances of existing
foreclosed real estate properties as a result of improved real estate
property values, and improved exit values on consumer real estate.

Capital

Capital Information

Table 7

At period end

(Dollars in thousands, except per-share data)

1Q

4Q

2014

2013

Total equity

$

2,021,825

$

1,964,759

Book value per common share

$

10.46

$

10.23

Tangible book value per common share (1)

$

9.06

$

8.83

Tangible common equity to tangible assets (1)

8.13

%

8.03

%

Risk-based capital (2)

Tier 1

$

1,814,561

11.37

%

$

1,763,682

11.41

%

Total

2,139,901

13.41

2,107,981

13.64

Tier 1 leverage capital

$

1,814,561

9.84

%

$

1,763,682

9.71

%

Tier 1 common capital (3)

$

1,530,037

9.59

%

$

1,488,651

9.63

%

(1) Excludes the impact of preferred shares, goodwill and other
intangibles (see “Reconciliation of GAAP to Non-GAAP Financial
Measures” table).

(2) The Company's capital ratios continue to be in excess of
"well-capitalized" regulatory benchmarks.

On April 21, 2014, TCF’s Board of Directors declared a regular
quarterly cash dividend of 5 cents per common share, payable on June
2, 2014, to stockholders of record at the close of business on May 15,
2014. TCF also declared dividends on the 7.50% Series A and 6.45%
Series B Non-Cumulative Perpetual Preferred Stock, both payable on
June 2, 2014, to stockholders of record at the close of business on
May 15, 2014.

Webcast Information

A live webcast of TCF’s conference call to discuss the first quarter
earnings will be hosted at TCF’s website, http://ir.tcfbank.com,
on April 22, 2014 at 8:00 a.m. CT. A slide presentation for the call
will be available on the website prior to the call. Additionally, the
webcast will be available for replay at TCF’s website after the
conference call. The website also includes free access to company news
releases, TCF’s annual report, investor presentations and SEC filings.

TCF is a Wayzata, Minnesota-based national bank holding
company. As of March 31, 2014, TCF had $18.8 billion in total
assets and 381 branches in Minnesota, Illinois, Michigan,
Colorado, Wisconsin, Indiana, Arizona and South Dakota, providing
retail and commercial banking services. TCF, through its
subsidiaries, also conducts commercial leasing and equipment
finance business in all 50 states, commercial inventory finance
business in the U.S. and Canada, and indirect auto finance
business in 48 states. For more information about TCF, please
visit http://ir.tcfbank.com.

Cautionary Statements for Purposes of the Safe Harbor Provisions
of the Securities Litigation Reform Act

Any statements contained in this earnings release regarding the
outlook for the Company’s businesses and their respective markets, such
as projections of future performance, guidance, statements of the
Company’s plans and objectives, forecasts of market trends and other
matters, are forward-looking statements based on the Company’s
assumptions and beliefs. Such statements may be identified by such words
or phrases as “will likely result,” “are expected to,” “will continue,”
“outlook,” “will benefit,” “is anticipated,” “estimate,” “project,”
“management believes” or similar expressions. These forward-looking
statements are subject to certain risks and uncertainties that could
cause actual results to differ materially from those discussed in such
statements and no assurance can be given that the results in any
forward-looking statement will be achieved. For these statements, TCF
claims the protection of the safe harbor for forward-looking statements
contained in the Private Securities Litigation Reform Act of 1995. Any
forward-looking statement speaks only as of the date on which it is
made, and we disclaim any obligation to subsequently revise any
forward-looking statement to reflect events or circumstances after such
date or to reflect the occurrence of anticipated or unanticipated events.

Certain factors could cause the Company’s future results to differ
materially from those expressed or implied in any forward-looking
statements contained herein. These factors include the factors discussed
in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the
year ended December 31, 2013, under the heading “Risk Factors,” the
factors discussed below and any other cautionary statements, written or
oral, which may be made or referred to in connection with any such
forward-looking statements. Since it is not possible to foresee all such
factors, these factors should not be considered as complete or
exhaustive.

Adverse Economic or Business Conditions;
Competitive Conditions; Credit and Other Risks.Deterioration
in general economic and banking industry conditions, including those
arising from government shutdowns, defaults, anticipated defaults or
rating agency downgrades of sovereign debt (including debt of the U.S.),
or continued high rates of or increases in unemployment in TCF’s primary
banking markets; adverse economic, business and competitive developments
such as shrinking interest margins, reduced demand for financial
services and loan and lease products, deposit outflows, deposit account
attrition or an inability to increase the number of deposit accounts;
customers completing financial transactions without using a bank;
adverse changes in credit quality and other risks posed by TCF’s loan,
lease, investment and securities available for sale portfolios,
including declines in commercial or residential real estate values,
changes in the allowance for loan and lease losses dictated by new
market conditions or regulatory requirements, or the inability of home
equity line borrowers to make increased payments caused by increased
interest rates or amortization of principal; deviations from estimates
of prepayment rates and fluctuations in interest rates that result in
decreases in value of assets such as interest-only strips that arise in
connection with TCF’s loan sales activity; interest rate risks resulting
from fluctuations in prevailing interest rates or other factors that
result in a mismatch between yields earned on TCF’s interest-earning
assets and the rates paid on its deposits and borrowings; foreign
currency exchange risks; counterparty risk, including the risk of
defaults by our counterparties or diminished availability of
counterparties who satisfy our credit quality requirements; decreases in
demand for the types of equipment that TCF leases or finances; the
effect of any negative publicity.

Legislative and Regulatory Requirements.New consumer protection and supervisory requirements and regulations,
including those resulting from action by the Consumer Financial
Protection Bureau and changes in the scope of Federal preemption of
state laws that could be applied to national banks and their
subsidiaries; the imposition of requirements that adversely impact TCF’s
lending, loan collection and other business activities as a result of
the Dodd-Frank Act, or other legislative or regulatory developments such
as mortgage foreclosure moratorium laws, use by municipalities of
eminent domain on underwater mortgages, or imposition of underwriting or
other limitations that impact the ability to use certain variable-rate
products; changes affecting customer account charges and fee income,
including changes to interchange rates; changes to bankruptcy laws which
would result in the loss of all or part of TCF’s security interest due
to collateral value declines; deficiencies in TCF’s compliance under the
Bank Secrecy Act in past or future periods, which may result in
regulatory enforcement action including monetary penalties; increased
health care costs resulting from Federal health care reform legislation;
regulatory criticism and resulting enforcement actions or other adverse
consequences such as increased capital requirements, higher deposit
insurance assessments or monetary damages or penalties; heightened
regulatory practices, requirements or expectations, including, but not
limited to, requirements related to the Bank Secrecy Act and anti-money
laundering compliance activity.

Earnings/Capital Risks and Constraints,
Liquidity Risks.Limitations on TCF’s ability to pay
dividends or to increase dividends because of financial performance
deterioration, regulatory restrictions or limitations; increased deposit
insurance premiums, special assessments or other costs related to
adverse conditions in the banking industry, the economic impact on banks
of the Dodd-Frank Act and other regulatory reform legislation; the
impact of financial regulatory reform, including additional capital,
leverage, liquidity and risk management requirements or changes in the
composition of qualifying regulatory capital (including those resulting
from U.S. implementation of Basel III requirements); adverse changes in
securities markets directly or indirectly affecting TCF’s ability to
sell assets or to fund its operations; diminished unsecured borrowing
capacity resulting from TCF credit rating downgrades and unfavorable
conditions in the credit markets that restrict or limit various funding
sources; costs associated with new regulatory requirements or
interpretive guidance relating to liquidity; regulatory actions or
changes in customer opt-in preferences with respect to overdraft, which
may have an adverse impact on TCF’s fee revenue; uncertainties relating
to future retail deposit account changes, including limitations on TCF’s
ability to predict customer behavior and the impact on TCF’s fee
revenues.

Supermarket Branching Risk; Growth Risks.Adverse developments affecting TCF’s supermarket banking
relationships or any of the supermarket chains in which TCF maintains
supermarket branches; costs related to closing underperforming branches;
slower than anticipated growth in existing or acquired businesses;
inability to successfully execute on TCF’s growth strategy through
acquisitions or cross-selling opportunities; failure to expand or
diversify TCF’s balance sheet through programs or new opportunities;
failure to successfully attract and retain new customers, including the
failure to attract and retain manufacturers and dealers to expand the
inventory finance business; failure to effectuate, and risks of claims
related to, sales and securitizations of loans; risks related to new
product additions and addition of distribution channels (or entry into
new markets) for existing products.

Technological and Operational Matters.
Technological or operational difficulties, loss or theft of information,
cyber-attacks and other security breaches, counterparty failures and the
possibility that deposit account losses (fraudulent checks, etc.) may
increase; failure to keep pace with technological change.

Litigation Risks.Results of
litigation, including class action litigation concerning TCF’s lending
or deposit activities including account servicing processes or fees or
charges, or employment practices; the effect of interchange rate
litigation against the Federal Reserve on debit card interchange fees;
and possible increases in indemnification obligations for certain
litigation against Visa U.S.A. and potential reductions in card revenues
resulting from such litigation or other litigation against Visa.

Accounting, Audit, Tax and Insurance Matters.Changes in accounting standards or interpretations of existing
standards; federal or state monetary, fiscal or tax policies, including
adoption of state legislation that would increase state taxes;
ineffective internal controls; adverse federal, state or foreign tax
assessments or findings in tax audits; lack of or inadequate insurance
coverage for claims against TCF; potential for claims and legal action
related to TCF’s fiduciary responsibilities.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended March 31,

Change

2014

2013

$

%

Interest income:

Loans and leases

$

202,537

$

204,905

$

(2,368

)

(1.2

)

%

Securities available for sale

3,163

4,795

(1,632

)

(34.0

)

Securities held to maturity

964

64

900

N.M.

Investments and other

7,963

5,786

2,177

37.6

Total interest income

214,627

215,550

(923

)

(.4

)

Interest expense:

Deposits

8,037

9,681

(1,644

)

(17.0

)

Borrowings

5,316

6,778

(1,462

)

(21.6

)

Total interest expense

13,353

16,459

(3,106

)

(18.9

)

Net interest income

201,274

199,091

2,183

1.1

Provision for credit losses

14,492

38,383

(23,891

)

(62.2

)

Net interest income after provision for credit losses

186,782

160,708

26,074

16.2

Non-interest income:

Fees and service charges

36,619

39,323

(2,704

)

(6.9

)

Card revenue

12,250

12,417

(167

)

(1.3

)

ATM revenue

5,319

5,505

(186

)

(3.4

)

Subtotal

54,188

57,245

(3,057

)

(5.3

)

Leasing and equipment finance

22,288

16,460

5,828

35.4

Gains on sales of auto loans, net

8,470

7,146

1,324

18.5

Gains on sales of consumer real estate loans, net

11,706

8,126

3,580

44.1

Other

6,381

3,726

2,655

71.3

Fees and other revenue

103,033

92,703

10,330

11.1

Gains on securities, net

374

-

374

N.M.

Total non-interest income

103,407

92,703

10,704

11.5

Non-interest expense:

Compensation and employee benefits

115,089

104,229

10,860

10.4

Occupancy and equipment

34,839

32,875

1,964

6.0

FDIC insurance

7,563

7,710

(147

)

(1.9

)

Operating lease depreciation

6,227

5,635

592

10.5

Advertising and marketing

5,478

5,732

(254

)

(4.4

)

Deposit account premiums

418

602

(184

)

(30.6

)

Other

41,335

37,939

3,396

9.0

Subtotal

210,949

194,722

16,227

8.3

Foreclosed real estate and repossessed assets, net

6,068

10,167

(4,099

)

(40.3

)

Other credit costs, net

119

(837

)

956

N.M.

Total non-interest expense

217,136

204,052

13,084

6.4

Income before income tax expense

73,053

49,359

23,694

48.0

Income tax expense

26,579

17,559

9,020

51.4

Income after income tax expense

46,474

31,800

14,674

46.1

Income attributable to non-controlling interest

1,717

1,826

(109

)

(6.0

)

Net income attributable to TCF Financial Corporation

44,757

29,974

14,783

49.3

Preferred stock dividends

4,847

4,524

323

7.1

Net income available to common stockholders

$

39,910

$

25,450

$

14,460

56.8

Net income per common share:

Basic

$

.25

$

.16

$

.09

56.3

%

Diluted

.24

.16

.08

50.0

Dividends declared per common share

$

.05

$

.05

$

-

-

%

Average common and common equivalent shares outstanding (in
thousands):

(1) Includes properties owned and foreclosed properties subject to
redemption.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

SUMMARY OF CREDIT QUALITY DATA, CONTINUED

(Dollars in thousands)

(Unaudited)

Allowance for Loan and Lease Losses

At March 31, 2014

At December 31, 2013

At March 31, 2013

Change from

% of

% of

% of

Dec. 31,

Mar. 31,

Balance

Portfolio

Balance

Portfolio

Balance

Portfolio

2013

2013

Consumer real estate

$

169,367

2.79

%

$

176,030

2.78

%

$

182,687

2.85

%

1

bps

(6

)

bps

Commercial

36,062

1.15

37,467

1.19

48,556

1.46

(4

)

(31

)

Leasing and equipment finance

18,623

.54

18,733

.55

17,541

.55

(1

)

(1

)

Inventory finance

10,309

.49

8,592

.52

8,788

.46

(3

)

3

Auto finance

12,062

.86

10,623

.86

5,390

.75

-

11

Other

623

2.76

785

2.94

634

2.67

(18

)

9

Total

$

247,046

1.52

$

252,230

1.59

$

263,596

1.69

(7

)

(17

)

Net Charge-Offs

Change from

Quarter Ended

Quarter Ended

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2014

2013

2013

2013

2013

2013

2013

Consumer real estate

First mortgage lien

$

9,678

$

10,545

$

12,770

$

15,084

$

19,907

$

(867

)

$

(10,229

)

Junior lien

3,025

5,901

5,474

8,642

10,540

(2,876

)

(7,515

)

Total consumer real estate

12,703

16,446

18,244

23,726

30,447

(3,743

)

(17,744

)

Commercial

1,510

9,363

6,513

2,449

7,849

(7,853

)

(6,339

)

Leasing and equipment finance

749

1,197

658

244

1,210

(448

)

(461

)

Inventory finance

(134

)

341

86

(14

)

355

(475

)

(489

)

Auto finance

2,276

1,976

1,122

765

836

300

1,440

Other

312

774

993

524

307

(462

)

5

Total

$

17,416

$

30,097

$

27,616

$

27,694

$

41,004

$

(12,681

)

$

(23,588

)

Net Charge-Offs as a Percentage of
Average Loans and Leases

Change from

Quarter Ended (1)

Quarter Ended

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

Dec. 31,

Mar. 31,

2014

2013

2013

2013

2013

2013

2013

Consumer real estate

First mortgage lien

1.04

%

1.11

%

1.30

%

1.48

%

1.90

%

(7)

bps

(86

)

bps

Junior lien

.46

.91

.88

1.46

1.78

(45

)

(132

)

Total consumer real estate

.80

1.03

1.14

1.48

1.86

(23

)

(106

)

Commercial

.19

1.21

.79

.29

.94

(102

)

(75

)

Leasing and equipment finance

.09

.14

.08

.03

.15

(5

)

(6

)

Inventory finance

(.03

)

.08

.02

-

.08

(11

)

(11

)

Auto finance

.69

.68

.46

.37

.50

1

19

Other

N.M.

N.M.

N.M.

16.05

9.01

N.M.

N.M.

Total

.43

.76

.71

.70

1.06

(33

)

(63

)

(1) Annualized.

N.M. Not Meaningful.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED AVERAGE BALANCE SHEETS, YIELDS AND RATES

(Dollars in thousands)

(Unaudited)

Three Months Ended March 31,

2014

2013

Average

Yields and

Average

Yields and

Balance

Interest

Rates (1) (2)

Balance

Interest

Rates (1) (2)

ASSETS:

Investments and other

$

620,718

$

3,985

2.60

%

$

809,768

$

3,182

1.59

%

Securities held to maturity

142,181

964

2.71

5,652

64

4.53

Securities available for sale:

U.S. Government sponsored entities:

Mortgage-backed securities, fixed rate

467,747

3,163

2.70

674,860

4,794

2.84

U.S. Treasury securities

-

-

-

900

-

.07

Other securities

80

-

2.47

106

1

2.49

Total securities available for sale (3)

467,827

3,163

2.70

675,866

4,795

2.84

Loans and leases held for sale

195,871

3,978

8.24

154,766

2,604

6.82

Loans and leases:

Consumer real estate:

Fixed-rate

3,498,832

48,532

5.62

3,916,709

57,058

5.91

Variable-rate

2,828,980

35,816

5.13

2,639,717

33,082

5.08

Total consumer real estate

6,327,812

84,348

5.41

6,556,426

90,140

5.58

Commercial:

Fixed-rate

1,559,991

19,496

5.07

1,900,563

25,185

5.37

Variable- and adjustable-rate

1,562,075

16,178

4.20

1,445,217

14,883

4.18

Total commercial

3,122,066

35,674

4.63

3,345,780

40,068

4.86

Leasing and equipment finance

3,434,691

40,779

4.75

3,199,499

40,913

5.11

Inventory finance

1,862,745

27,469

5.98

1,686,364

25,605

6.16

Auto finance

1,327,232

14,787

4.52

670,096

8,642

5.23

Other

13,273

242

7.41

13,641

276

8.19

Total loans and leases (4)

16,087,819

203,299

5.11

15,471,806

205,644

5.38

Total interest-earning assets

17,514,416

215,389

4.97

17,117,858

216,289

5.11

Other assets (5)

1,094,923

1,126,694

Total assets

$

18,609,339

$

18,244,552

LIABILITIES AND EQUITY:

Non-interest bearing deposits:

Retail

$

1,537,066

$

1,426,314

Small business

771,825

744,168

Commercial and custodial

386,927

329,992

Total non-interest bearing deposits

2,695,818

2,500,474

Interest-bearing deposits:

Checking

2,343,095

261

.05

2,308,263

497

.09

Savings

6,120,155

2,529

.17

6,090,427

3,369

.22

Money market

819,312

575

.28

815,374

630

.31

Subtotal

9,282,562

3,365

.15

9,214,064

4,496

.20

Certificates of deposit

2,543,345

4,672

.74

2,323,267

5,185

.90

Total interest-bearing deposits

11,825,907

8,037

.28

11,537,331

9,681

.34

Total deposits

14,521,725

8,037

.22

14,037,805

9,681

.28

Borrowings:

Short-term borrowings

97,996

80

.33

8,631

8

.40

Long-term borrowings

1,494,095

5,236

1.41

1,927,139

6,770

1.41

Total borrowings

1,592,091

5,316

1.34

1,935,770

6,778

1.41

Total interest-bearing liabilities

13,417,998

13,353

.40

13,473,101

16,459

.49

Total deposits and borrowings

16,113,816

13,353

.33

15,973,575

16,459

.42

Other liabilities

508,689

390,825

Total liabilities

16,622,505

16,364,400

Total TCF Financial Corp. stockholders' equity

1,971,264

1,863,393

Non-controlling interest in subsidiaries

15,570

16,759

Total equity

1,986,834

1,880,152

Total liabilities and equity

$

18,609,339

$

18,244,552

Net interest income and margin

$

202,036

4.66

$

199,830

4.72

(1) Annualized.

(2) Interest and yields are presented on a fully tax-equivalent
basis.

(3) Average balances and yields of securities available for sale are
based upon historical amortized cost and exclude equity securities.

(4) Average balances of loans and leases include non-accrual loans
and leases, and are presented net of unearned income.

(5) Includes operating leases.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF INCOME AND FINANCIAL HIGHLIGHTS

(Dollars in thousands, except per-share data)

(Unaudited)

Three Months Ended

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2014

2013

2013

2013

2013

Interest income:

Loans and leases

$

202,537

$

204,042

$

203,879

$

206,675

$

204,905

Securities available for sale

3,163

4,194

4,448

4,637

4,795

Securities held to maturity

964

94

57

62

64

Investments and other

7,963

7,599

7,069

6,234

5,786

Total interest income

214,627

215,929

215,453

217,608

215,550

Interest expense:

Deposits

8,037

8,428

9,644

8,851

9,681

Borrowings

5,316

5,639

6,182

6,713

6,778

Total interest expense

13,353

14,067

15,826

15,564

16,459

Net interest income

201,274

201,862

199,627

202,044

199,091

Provision for credit losses

14,492

22,792

24,602

32,591

38,383

Net interest income after provision for credit losses

186,782

179,070

175,025

169,453

160,708

Non-interest income:

Fees and service charges

36,619

43,254

42,457

41,572

39,323

Card revenue

12,250

13,066

13,167

13,270

12,417

ATM revenue

5,319

5,382

5,941

5,828

5,505

Subtotal

54,188

61,702

61,565

60,670

57,245

Leasing and equipment finance

22,288

23,624

29,079

22,874

16,460

Gains on sales of auto loans, net

8,470

7,278

7,140

8,135

7,146

Gains on sales of consumer real estate loans, net

11,706

5,345

4,152

4,069

8,126

Other

6,381

6,419

4,304

4,035

3,726

Fees and other revenue

103,033

104,368

106,240

99,783

92,703

Gains (losses) on securities, net

374

1,044

(80)

-

-

Total non-interest income

103,407

105,412

106,160

99,783

92,703

Non-interest expense:

Compensation and employee benefits

115,089

108,589

110,833

105,537

104,229

Occupancy and equipment

34,839

35,504

33,253

33,062

32,875

FDIC insurance

7,563

7,892

8,102

8,362

7,710

Operating lease depreciation

6,227

6,009

6,706

6,150

5,635

Advertising and marketing

5,478

3,275

4,593

5,532

5,732

Deposit account premiums

418

479

664

600

602

Other

41,335

44,162

43,730

41,946

37,939

Subtotal

210,949

205,910

207,881

201,189

194,722

Branch realignment

-

8,869

-

-

-

Foreclosed real estate and repossessed assets, net

6,068

6,066

4,162

7,555

10,167

Other credit costs, net

119

(376)

189

(228)

(837)

Total non-interest expense

217,136

220,469

212,232

208,516

204,052

Income before income tax expense

73,053

64,013

68,953

60,720

49,359

Income tax expense

26,579

22,791

24,551

19,444

17,559

Income after income tax expense

46,474

41,222

44,402

41,276

31,800

Income attributable to non-controlling interest

1,717

1,227

1,607

2,372

1,826

Net income attributable to TCF Financial Corporation

44,757

39,995

42,795

38,904

29,974

Preferred stock dividends

4,847

4,847

4,847

4,847

4,524

Net income available to common stockholders

$

39,910

$

35,148

$

37,948

$

34,057

$

25,450

Net income per common share:

Basic

$

.25

$

.22

$

.24

$

.21

$

.16

Diluted

.24

.22

.23

.21

.16

Dividends declared per common share

$

.05

$

.05

$

.05

$

.05

$

.05

Financial highlights:

Pre-tax pre-provision profit(1)

$

87,545

$

86,805

$

93,555

$

93,311

$

87,742

Return on average assets(2)

1.00

%

.90

%

.97

%

.90

%

.70

%

Return on average common equity(2)

9.35

8.39

9.28

8.39

6.36

Net interest margin(2)

4.66

4.67

4.62

4.72

4.72

(1) Pre-tax pre-provision profit is calculated as total revenues
less non-interest expense.

(2) Annualized.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY AVERAGE BALANCE SHEETS

(In thousands)

(Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2014

2013

2013

2013

2013

ASSETS

Cash and due from banks

$

780,253

$

832,833

$

1,031,785

$

871,288

$

945,928

Investments

98,561

94,825

101,875

114,863

116,362

Securities held to maturity

141,650

10,178

5,518

5,564

5,652

Securities available for sale:

U.S. Government sponsored entities:

Mortgage-backed securities

470,330

622,146

642,322

655,795

676,296

U.S. Treasury securities

-

-

-

494

900

Other securities

2,162

2,812

2,675

2,575

2,400

Total securities available for sale

472,492

624,958

644,997

658,864

679,596

Loans and leases held for sale

195,871

193,164

156,593

116,390

154,766

Loans and leases:

Consumer real estate:

Fixed-rate

3,498,832

3,584,072

3,678,665

3,809,066

3,916,709

Variable-rate

2,828,980

2,828,110

2,723,947

2,621,619

2,639,717

Total consumer real estate

6,327,812

6,412,182

6,402,612

6,430,685

6,556,426

Commercial:

Fixed-rate

1,559,991

1,592,418

1,765,172

1,833,144

1,900,563

Variable- and adjustable-rate

1,562,075

1,496,106

1,517,708

1,503,262

1,445,217

Total commercial

3,122,066

3,088,524

3,282,880

3,336,406

3,345,780

Leasing and equipment finance

3,434,691

3,342,182

3,261,638

3,236,799

3,199,499

Inventory finance

1,862,745

1,734,286

1,637,538

1,875,810

1,686,364

Auto finance

1,327,232

1,157,586

973,418

823,102

670,096

Other

13,273

13,369

12,299

13,060

13,641

Total loans and leases

16,087,819

15,748,129

15,570,385

15,715,862

15,471,806

Allowance for loan and lease losses

(251,670

)

(256,953

)

(263,228

)

(264,403

)

(265,392

)

Net loans and leases

15,836,149

15,491,176

15,307,157

15,451,459

15,206,414

Premises and equipment, net

439,050

438,824

439,307

440,383

440,437

Goodwill

225,640

225,640

225,640

225,640

225,640

Other assets

419,673

403,340

389,728

448,647

469,757

Total assets

$

18,609,339

$

18,314,938

$

18,302,600

$

18,333,098

$

18,244,552

LIABILITIES AND EQUITY

Non-interest-bearing deposits:

Retail

$

1,537,066

$

1,430,998

$

1,435,958

$

1,476,173

$

1,426,314

Small business

771,825

812,394

777,538

752,395

744,168

Commercial and custodial

386,927

377,568

347,971

326,773

329,992

Total non-interest bearing deposits

2,695,818

2,620,960

2,561,467

2,555,341

2,500,474

Interest-bearing deposits:

Checking

2,343,095

2,303,416

2,292,133

2,351,652

2,308,263

Savings

6,120,155

6,197,411

6,238,462

6,059,640

6,090,427

Money market

819,312

845,562

822,094

791,859

815,374

Subtotal

9,282,562

9,346,389

9,352,689

9,203,151

9,214,064

Certificates of deposit

2,543,345

2,392,896

2,401,811

2,360,881

2,323,267

Total interest-bearing deposits

11,825,907

11,739,285

11,754,500

11,564,032

11,537,331

Total deposits

14,521,725

14,360,245

14,315,967

14,119,373

14,037,805

Borrowings:

Short-term borrowings

97,996

8,333

6,545

7,314

8,631

Long-term borrowings

1,494,095

1,486,189

1,609,211

1,879,576

1,927,139

Total borrowings

1,592,091

1,494,522

1,615,756

1,886,890

1,935,770

Accrued expenses and other liabilities

508,689

508,253

455,911

420,398

390,825

Total liabilities

16,622,505

16,363,020

16,387,634

16,426,661

16,364,400

Equity:

Preferred stock

263,240

263,240

263,240

263,240

263,240

Common stock

1,655

1,650

1,646

1,642

1,637

Additional paid-in capital

783,803

775,432

767,630

760,256

753,583

Retained earnings, subject to certain restrictions

986,196

960,852

931,979

903,300

880,582

Accumulated other comprehensive (loss) income

(21,336

)

(20,717

)

(23,757

)

(758

)

5,624

Treasury stock at cost and other

(42,294

)

(41,811

)

(41,456

)

(41,542

)

(41,273

)

Total TCF Financial Corporation stockholders' equity

1,971,264

1,938,646

1,899,282

1,886,138

1,863,393

Non-controlling interest in subsidiaries

15,570

13,272

15,684

20,299

16,759

Total equity

1,986,834

1,951,918

1,914,966

1,906,437

1,880,152

Total liabilities and equity

$

18,609,339

$

18,314,938

$

18,302,600

$

18,333,098

$

18,244,552

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

CONSOLIDATED QUARTERLY YIELDS AND RATES(1)(2)

(Unaudited)

Mar. 31,

Dec. 31,

Sep. 30,

Jun. 30,

Mar. 31,

2014

2013

2013

2013

2013

ASSETS

Investments and other

2.60

%

2.43

%

1.87

%

2.03

%

1.59

%

Securities held to maturity

2.71

3.66

4.15

4.47

4.53

Securities available for sale:

U.S. Government sponsored entities:

Mortgage-backed securities, fixed-rate

2.70

2.68

2.79

2.83

2.84

U.S. Treasury securities

-

-

-

.07

.07

Other securities

2.47

2.50

2.04

2.54

2.49

Total securities available for sale(3)

2.70

2.68

2.79

2.83

2.84

Loans and leases held for sale

8.24

7.28

7.51

8.74

6.82

Loans and leases:

Consumer real estate:

Fixed-rate

5.62

5.73

5.73

5.89

5.91

Variable-rate

5.13

5.13

5.10

5.13

5.08

Total consumer real estate

5.41

5.46

5.46

5.58

5.58

Commercial:

Fixed-rate

5.07

5.16

5.36

5.25

5.37

Variable- and adjustable-rate

4.20

4.12

4.12

4.16

4.18

Total commercial

4.63

4.65

4.79

4.76

4.86

Leasing and equipment finance

4.75

4.89

4.94

4.94

5.11

Inventory finance

5.98

5.85

6.01

5.96

6.16

Auto finance

4.52

4.64

4.70

4.97

5.23

Other

7.41

7.78

8.34

8.10

8.19

Total loans and leases

5.11

5.17

5.22

5.29

5.38

Total interest-earning assets

4.97

4.99

4.98

5.08

5.11

LIABILITIES

Interest-bearing deposits:

Checking

.05

.05

.06

.06

.09

Savings

.17

.17

.23

.18

.22

Money market

.28

.29

.28

.28

.31

Subtotal

.15

.15

.19

.16

.20

Certificates of deposit

.74

.80

.85

.87

.90

Total interest-bearing deposits

.28

.28

.33

.31

.34

Total deposits

.22

.23

.27

.25

.28

Borrowings:

Short-term borrowings

.33

.96

.59

.44

.40

Long-term borrowings

1.41

1.51

1.53

1.43

1.41

Total borrowings

1.34

1.50

1.52

1.42

1.41

Total interest-bearing liabilities

.40

.42

.47

.46

.49

Net interest margin

4.66

4.67

4.62

4.72

4.72

(1) Annualized.

(2) Yields are presented on a fully tax-equivalent basis.

(3) Average yields of securities available for sale are based upon
the historical amortized cost and exclude equity securities.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1)

(Dollars in thousands)

(Unaudited)

At Mar. 31,

At Dec. 31,

2014

2013

Computation of tangible common equity to
tangible assets:

Total equity

$

2,021,825

$

1,964,759

Less: Non-controlling interest in subsidiaries

21,284

11,791

Total TCF Financial Corporation stockholders’ equity

2,000,541

1,952,968

Less:

Preferred stock

263,240

263,240

Goodwill

225,640

225,640

Other intangibles

5,905

6,326

Tangible common equity

$

1,505,756

$

1,457,762

Total assets

$

18,760,527

$

18,379,840

Less:

Goodwill

225,640

225,640

Other intangibles

5,905

6,326

Tangible assets

$

18,528,982

$

18,147,874

Tangible common equity to tangible assets

8.13

%

8.03

%

At Mar. 31,

At Dec. 31,

2014

2013

Computation of tangible book value per
common share:

Tangible common equity

$

1,505,756

$

1,457,762

Common shares outstanding

166,127,670

165,122,295

Tangible book value per common share

$

9.06

$

8.83

At Mar. 31,

At Dec. 31,

2014

2013

Computation of Tier 1 common capital
ratio:

Total Tier 1 capital

$

1,814,561

$

1,763,682

Total risk-weighted assets

15,959,457

15,455,706

Total Tier 1 risk-based capital ratio

11.37

%

11.41

%

Computation of Tier 1 common capital ratio:

Total Tier 1 capital

$

1,814,561

$

1,763,682

Less:

Preferred stock

263,240

263,240

Qualifying non-controlling interest in subsidiaries

21,284

11,791

Total Tier 1 common capital

$

1,530,037

$

1,488,651

Total Tier 1 common capital ratio

9.59

%

9.63

%

(1) When evaluating capital adequacy and utilization, management
considers financial measures such as Tangible Common Equity to
Tangible Assets, Tangible Book Value per Common Share and the Tier 1
Common Capital Ratio. These measures are non-GAAP financial measures
and are viewed by management as useful indicators of capital levels
available to withstand unexpected market or economic conditions, and
also provide investors, regulators, and other users with information
to be viewed in relation to other banking institutions.

TCF FINANCIAL CORPORATION AND SUBSIDIARIES

RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (1),
CONTINUED

(Dollars in thousands)

(Unaudited)

Mar. 31

Dec. 31

2014

2013

Computation of return on average tangible
common equity:

Net income available to common shareholders

$

39,910

$

35,148

Other intangibles amortization, net of tax

265

319

Adjusted net income available to common shareholders

40,175

35,467

Average balances:

Total equity

$

1,986,834

$

1,951,918

Less: Non-controlling interest in subsidiaries

15,570

13,272

Total TCF Financial Corporation stockholders’ equity

1,971,264

1,938,646

Less:

Preferred stock

263,240

263,240

Goodwill

225,640

225,640

Other intangibles

6,134

6,591

Tangible average common equity

$

1,476,250

$

1,443,175

Annualized return on average tangible common equity

10.89

%

9.83

%

(1) When evaluating capital adequacy and utilization, management
considers financial measures such as Return on Average Tangible
Common Equity. This measure is a non-GAAP financial measure and is
viewed by management as a useful indicator of capital levels
available to withstand unexpected market or economic conditions, and
also provides investors, regulators, and other users with
information to be viewed in relation to other banking institutions.